GBP specs even more net long - Nomura

FXStreet (Bali) - For the week ended July 1, non-commercial accounts bought $0.8bn of GBP, bringing sterling to the most net long it has been since 2007, notes Nomura FX Strategists.

Key Quotes

"JPY was the most bought currency for the week ended Tuesday, with $1.5bn of buying, while USD was the most sold, with $3.1bn of net longs cut. Much of these changes have since reversed, however."

"Speculative accounts bought $0.8bn of GBP by Tuesday, bringing total net longs to $6.1bn. We estimate that the positioning has remained relatively stable since."

"USD was sold on the week to the tune of $3.1bn by Tuesday, although we estimate that non-commercial accounts bought it back by Monday, likely a reflection of the strong payroll data released in the second half of last week."

"Non-commercial accounts sold $0.6bn of EUR by Tuesday and another $2.1bn since. EUR positioning was -$10.4bn as of the last official data point, and with the estimated selling since would now stand at -$12.5bn. This is the most net short EUR has been since May of last year."

"CAD positioning turned positive by Tuesday to $0.3bn after $0.7bn of buying, which is the first time since February 2013. We estimate some of this buying was given back since then, however, with CAD positioning now nearly flat."

"AUD net longs increased by $0.6bn on the week ended Tuesday to $3.7bn, the most net long AUD has been since April of last year."